Covid-19: Economic Impact of Lockdowns Debate

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Department: HM Treasury

Covid-19: Economic Impact of Lockdowns

Ian Paisley Excerpts
Tuesday 29th November 2022

(1 year, 5 months ago)

Westminster Hall
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Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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Does my right hon. Friend accept that in Northern Ireland, the impact has been even greater? In a population of less than 1.9 million people, about 400,000 people are on waiting lists. The cancer waiting list and undiagnosed cancers are at an all-time high. The ambulance service is in disarray, and people in our wonderful nursing profession are being left high and dry, despite their expectations. They will not be rewarded, after being told that they were the most valuable people in society.

Sammy Wilson Portrait Sammy Wilson
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The other aspect to this is the excess deaths that we now have. At the time, I did not support the daily death toll being announced on the news. I thought it was wrong to do that. It is strange; there are now excess deaths due to lockdown and its implications on the health service, but we do not publish those numbers. It is a daily reminder of what happened, however. Families across the country are sadly being reminded daily of the impact on the health service of the decision that lockdown was the way to go, even though in many cases the hospitals that closed down, and were not open for normal service, were not dealing with covid patients. I mention that because it reminds me of the fear that was engendered even among health professionals. Many health professionals would phone me and say, “I don’t dare speak out, because if you do, you can get struck off.” Such was the atmosphere of fear.

An issue that I have not yet mentioned is education and the long-term impact of the unnecessary lockdown of schools. Children could not easily become infected or pass on the infection. Even if they did get covid, it had very little impact on them, but they have not escaped the long-term educational impact of being taken away from school.

It has been mentioned briefly, but not enough, that the most severe impact has been felt by the least well-off in our society. I remember going into people’s homes—I probably should not have visited them during lockdown, but I did, because they were my constituents. Those living in blocks of flats did not have a garden to put their youngsters out into, and they were worried that they were not geared up to help their youngsters with their educational needs. They were worried about the long-term impact on their education, and on their social lives. I think we have forgotten that the people hardest hit were the most vulnerable and most needy. I hope that this debate helps to remind us that we should not go down that path again, and that all these issues should be considered.

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Abena Oppong-Asare Portrait Abena Oppong-Asare
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I will take your comments on board, Mrs Murray.

We know that the impacts of covid-19—particularly the economic impacts—run deeper. Just this month, new information has been revealed detailing how some people, including a Tory peer, sought to use covid-19 and lockdowns for their own benefit. PPE Medpro was given £230 million in Government contracts after a referral to the VIP fast lane by a Tory peer. The extent of her involvement in PPE Medpro has now come to light, and tens of millions of pounds of taxpayers’ money ended up in offshore accounts. The protective equipment produced by PPE Medpro was substandard: 25 million surgical gowns, which cost the taxpayer £122 million, were rejected by the Department of Health and Social Care after technical inspection because they were completely unusable. We also know that £6.7 billion was wasted on covid payments to businesses and individuals fraudulently or by mistake.

The economic impact of covid-19 lockdowns was immense, and was exacerbated by dither and delay in Downing Street, and hard-working businesses, families and individuals suffered as a result. It has left us with an economy that lags behind the pack. Wages are lower in 2022 in real terms than when the Tories came to power in 2010, and business investment is 8% below its pre-pandemic peak. The mini Budget from the short-lived Prime Minister and Chancellor crashed our economy.

The economic facts speak for themselves. We are now the only G7 economy that is smaller than it was before the pandemic. Other countries are still dealing with the economic impacts of covid-19, but we are doing worse. We are at the back of the pack, lagging far behind. The Chancellor said he wants to address the impacts, but again the economic facts speak for themselves.

Perhaps I am being a bit unfair to the current Chancellor and Government. They have quite a task on their hands. After all, for the 12 years in which their party has been in Government, low growth and low ambition have held our country back. What would Labour do fix the mess and grow our economy in the aftermath of covid? Back in January, we proposed a windfall tax on oil and gas giants—on the profits of rising prices and war. The Government ignored our calls and instead pressed ahead with their own windfall tax, which amounts to a huge giveaway of public money to the very oil and gas companies that are making record profits. Under the scheme, some oil and gas companies will pay zero tax this year, despite record global profits.

Ian Paisley Portrait Ian Paisley
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I have listened carefully to the hon. Lady. Some of us who turned up to Parliament during that terrible time voted against the Government’s proposals. I think I voted against every single Government restriction except one. The hon. Lady and her party, I think, voted for them all. There is a bit of complicity here: if somebody’s hands are on the steering wheel and they keep driving in one direction, it is hard for them to say in hindsight, “Something different should have been done.” This grates on me just a little because there were opportunities all along the road to say, “There’s a different course of action that can be taken here.”

Abena Oppong-Asare Portrait Abena Oppong-Asare
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I want to be clear that the Labour party did raise concerns throughout the pandemic that the Government were not looking at the scientific advice, and they took late action to address and deal with it.

To conclude, as we look to recover from the pandemic, we need an ambitious plan for growth. That is what Labour has presented and that is what we will champion.